FINANCING YOUR HOME
Interested in taking a home loan? Here are a few tips that can help you feel at ease with the eligibility and the loan process.
For Property in Chandigarh Banks follow a thumb rule that ones total debt outflow (EMI, including all loans) should not be more than 50% of your take home salary. For instance your take home salary is Rs 80,000/. The total EMI (including all loans) should not be more than Rs 40,000/.
The bank follows yet another thumb rule that ones total loan amount should not be more than 48 times of your take home salary. For instance your monthly take home salary is Rs 80,000/. The total loan amount that can be sanctioned to you will be approximately Rs 38, 40,000 (i.e. 48 times of your monthly take
Yes, while purchasing one can opt for a joint loan with one’s spouse. In case both husband and wife are working or have separate sources of income, they can go in for a joint loan. This way the loan amount also increases. Clubbing the income of your spouse with yours can enhance home loan eligibility. This is one of the main reasons why one would want to opt for a joint loan. Home loan eligibility is calculated by clubbing your income with your spouse’s. All the banks allow clubbing of the spouse’s income to work out loan eligibility. In such cases, your spouse will act as a joint borrower.However, banks are selective in extending this concept of joint loan to other relations. Some banks allow parents and children to be joint borrowers. The reason for restrictions is that in the vent of some dispute arising between the joint borrowers, the income stops getting shared and added which may result as a problem in paying the loan installments. Some banks make it compulsory that the home should be registered in the name of co-borrower also. It is important to note that a
marriage certificate is the most important document if you are opting for joint home loan with your spouse, else it will be impossible for you to get the loan sanctioned.
The following are the tip which can help in increasing your loan eligibility to buy Property in Chandigarh:
Take loan for maximum tenure possible:
This is the best way possible to take maximum loan amount from a HFC (House Financing Company). These days HFC’s are giving loans for tenure for 25 years.
Take a joint loan: Try to club income of your spouse to get more amount of loan. For instance if an individual applies for home loan to buy property in Chandigarh and according to his eligibility his sanctioned loan is Rs 15 lacs, whereas he needs loan for Rs 20 lacs. If his spouse is working with almost same salary then they will satisfy banks loan eligibility criteria and banks will be keen to give loan to the couple. Here a marriage certificate plays a very important role.
Prepay all your loans: It happens so that there are many people already availing for car loan or any other loan before they apply for a home loan. Prepay all the loans before applying for a home loan to buy property in Chandigarh. This will reduce the chances of your application rejection.
Set up home loans: If you are young with good educational qualification and experience banks will be interested in giving you loan more than your eligibility. This is with an assumption that your income increases as your career grows.
The process of getting a home loan starts
The application form must be supported with valid documents to substantiate the facts. Generally the banks will ask you to submit the following documents:
Identity proof Address proof
Details about the property if finalized
Bank statements (salary account)
Income tax returns for the last 3 years
The purpose of the entire exercise is to ascertain the suitability of an applicant for a home loan. The income documents and bank statements provide vital cues to the bank regarding your financial health.
The following documents will be provided by the builder to own a property in Chandigarh
Apartment buyer agreement
Permission to mortgage
NRIs can easily avail home loans in India.
Here is the list of documents required:
Application form, photographs of all
Age, ID, sign proof passport copy
attested from a notary at foreign location
Residence proof of applicant at foreign
Latest 6 months salary slips
Latest 6 months bank statement of foreign salary account
Form w-2/relevant income tax form
Local guarantor details
GPA in the name of local guarantor/ co
application in blood relation attested by
embassy or form at foreign location
Latest 6 months bank statement of NRE/
Copy of Visa
Credit report and credit score
Photocopies of all property papers
HR e-mail ID
Processing fee cheque
Work permit copy
Repayment track of loan if any
Still left with Unanswered questions.Call – 08872 21 21 21